Reflation Equities Fund 1, L.P. (REF) is a $120,000,000 opportunistic, diversified real estate hedge fund seeking strong returns through investments in undervalued residential and commercial properties that have suffered a drastic decline in value resulting from recent widespread economic troubles. The Fund will generate income through leases and selling properties as the economy improves. Reflation will only hold properties long enough to make a good return for investors, and intends to sell before the next peak in the market. Buying now at historic lows allows the Fund to make solid returns without the risk of waiting too long to sell.
Undervalued properties will be purchased by the Fund in a variety of ways, including discounted bulk bank notes, foreclosures, short sales, auctions, and directly from owners. Reflation Equities LLC will serve as the General Partner to oversee the management of all REF activities, including property evaluation, purchase, management, and sale. Both entities (LP and LLC) were founded by successful real estate veteran Jerry Johnson.
Investors will benefit from this approach in a variety of ways. Buying low and selling before the next bubble are primary factors in generating income and mitigating risk. Because the Fund purchases properties and carries no mortgages, investors will hold real assets and not just paper. Additionally, the highly experienced operations team of Reflation Equities LLC will help ensure that all purchased properties meet the Fund’s stringent acquisition criteria, and that all property management, construction management, and real estate brokerage functions will be performed in house for optimum control and profitability.